Profit Maximisation vs Wealth Maximisation | Profit & Wealth Maximisation | Financial Management

🔴 Profit Maximization :

🗣️ Focus: Short-term financial gains.
🗣️ Methods: Increasing revenue through pricing strategies, reducing costs through operational efficiency, and sometimes cutting expenses that might impact long-term value.
🗣️ Metrics: Net income, earnings per share (EPS).
🗣️ Risk: May not fully consider long-term risk and potential negative impacts on stakeholders.

🔴 Wealth Maximization :

🗣️ Focus: Long-term shareholder value and sustainable business growth.
🗣️ Methods: Strategic investments in innovation, sustainability, employee training, and building goodwill.
🗣️ Metrics: Stock price, market capitalization.
🗣️ Risk: Takes into account the time value of money, future cash flows, and potential risks.
🗣️ Stakeholders: Considers the interests of shareholders, employees, customers, and the broader community.

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🔴 This video might be useful for students preparing for -
🗣️ 11th Commerce #11thcommerce
🗣️ 12th commerce boards #12thcommerce
🗣️ CSEET(CS FOUNDATION ICSI) #cseet
🗣️ CA Foundation #cafoundation
🗣️ UGC NET COMMERCE #ugcnetcommerce
🗣️ LLB #llb
🗣️ UGC NET LAW #ugcnetlaw

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🔴 In this video - #padhakulog
Teacher's Name - CS Payal Popli
Topic - Difference between Profit maximisation and wealth maximisation

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Видео Profit Maximisation vs Wealth Maximisation | Profit & Wealth Maximisation | Financial Management канала Padhaku Log